Red Mountain

Gold Project (100%)

The Red Mountain Gold Project, 100% owned by Zenith Minerals, is located in Queensland within the historically significant Auburn Arc (see figure 1). The project benefits from favourable terrain and excellent access to infrastructure, providing logistical advantages for exploration and future development. An intrusion-related gold system (IRGS) breccia pipe has been identified at the project (Figure 4), positioning Red Mountain as a key focus within Zenith’s gold portfolio. IRGS deposits, like those at Mt Wright, Mt Rawdon, and Kidston, are renowned for their large-scale mineralisation potential, offering significant exploration upside.

The geological setting at Red Mountain is defined by a large intrusive-related breccia pipe system, a hallmark feature of highly productive gold deposits. Mineralisation occurs along the contact between the breccia pipe and a flow-banded rhyolite unit within the Rawbelle Granodiorite, offering excellent potential for depth extensions of gold mineralisation. Drilling and geophysical studies have confirmed high-grade gold and silver mineralisation, with significant widths in multiple zones.

 

Figure 1: Red Mountain Gold Project (including Auburn & Privateer)
location plan

Previous Drilling Results

Diamond drilling in 2023 confirmed the depth continuity of gold and silver mineralisation occurring as stockwork, sheeted and extensional quartz and minor base metal veins hosted primarily within rhyolite and granodiorite.  Results reported (ASX Release 29-Aug-23) include:

o 129m at 0.51 g/t Au + 11.9 g/t Ag from 225m in ZRMDD052, including 

o 12m at 1.36 g/t Au + 4.93 g/t Ag from 288m and,

o 9m at 1.24 g/t Au + 6.30 g/t Ag from 323m

o 11m at 0.45 g/t Au + 4.54 g/t Ag from 183m, and

o 11m at 1.16 g/t Au + 1.08 g/t Ag from 224m in ZRMDD051

While true widths remain undetermined at this stage, the scale of the mineralisation encountered confirms there is excellent potential for a large mineralised system at Red Mountain. 

These intercepts confirm that the system has excellent potential for a large-scale gold deposit at depth. Previous shallow drilling also returned high-grade intersections(1), such as:

o 13m @ 8.0 g/t Au from surface in ZRMRC001, incl 6m @ 16.7 g/t Au from surface

o 15m @ 3.5 g/t Au from 57m in ZRMRC019, incl 2m @ 22.4 g/t Au from 70m

o 12m @ 4.9 g/t Au from 102m in ZRMRC021, incl 6m @ 9.4 g/t Au from 103m 

o 5m @ 10.4 g/t Au from 67m in ZRMRC023, incl 1m @ 49.9 g/t Au from 67m, and

o 7.7m @ 4.4 g/t Au from 63m in ZRMCD041, incl 1m @ 19.3 g/t Au from 63m

                 (1) ZNC ASX Release 3-Aug-20, 13-Oct-20, 9-Nov-20, 21-Jan-21, and 14-Apr-21

These results, combined with updated 3D geological modelling and geophysical data re-interpretation, have identified several high-priority targets for future drilling. The project remains open at depth and along strike, providing a strong case for further exploration.

Metallurgical tests from 2021 confirmed that the gold mineralisation is free-milling and non-refractory, with average gold recovery rates of 83.3%, including 95.8% for low-arsenic samples. This highlights the processing potential of the deposit through conventional cyanide leaching techniques.